Taking a Look at Compensation Management Software

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Diving Deeper Into Compensation Management

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What is Compensation Management?

Compensation management may sound like a complex topic, but it’s actually fairly simple. Employees get hired by a company, perform work for that company, and expect to get paid. Using compensation management is a way for companies to show their employees that they appreciate all of their hard work, which in turn creates an overall better work environment. By definition, compensation management is the distribution of monetary payment to an employee as a reward for the work performed. Of course, each company follows different procedures and protocols when providing compensation, but typically the overall goals remain the same.

What are the goals?

We are going to dive a little deeper into the overall goals of compensation management as listed above. This not only acts a form of payment to employees, but has psychological and financial long term benefits for a company and its staff.  Harvest HCM and other businesses strive to find quality, long term employees that enjoy their job and do it well. Effective compensation management can:

• Reduce employee turnover rates
• Improve employee morale
• Increase company loyalty
• Create a healthy work environment

Source

https://study.com/academy/lesson/what-is-compensation-management-definition-components.html

Types of Compensation Management

There are different ways to pay your employees and every company has its set of preferred methods. Just to name a few:

• Base Pay
• Commissions
• Salary
• Overtime Pay
• Insurance, vacation time, retirement plans

Setting a base pay is a good way to start new employees off. They will know what to expect within their first few months of employment and recognize that there is room for further growth and increase in compensation. Many companies encourage employees to work extra hours by including overtime pay, ultimately providing an incentive for covering shifts. Salary is also a standard form of compensation that can potentially increase with time and expertise. Aside from monetary payments, many companies offer insurance policies and plans for employees and their families. This often includes health and dental coverage.

 Offering PTO hours or weeks of vacation time per year is an effective way to encourage and reward hard work. Beneficial retirement plans can attract potential employees as well as retain quality employees for long periods of time. Upholding great retirement plans reflects well on the company itself because not only are its employees building a retirement fund, but the company reveals how important individuals’ futures are.

Source

https://hr-guide.com/Compensation/Compensation_Overview.htm

Compensation Tactics to Keep Employees  

Creating a compensation plan is essential for every business. Statistics show that the most profitable companies have high employee retention, which leads to company loyalty and strong relationships among employees, management, and corporate. Companies such as Harvest HCM create software that makes it easier for businesses to compensate their employees, thus helping boost happiness and productivity among all sectors of the company. Keeping your employees is one of the major keys to success, and below we’ll discuss a few ways on how to do just that.

A Mix of Salary and Incentives

These concepts serve two different purposes all in the effort to meet the same goal. Providing your employees with a salary ensures that they are completing the tasks that are required of them. Providing an incentive, such as a bonus or commission, gives them a reason to go above and beyond. A sales person will work harder to make an extra sale for their company and an employee will work extra hours if the business is short staffed, but both will be rewarded for their time. In this case, everyone wins! Companies should practice this strategy in order to increase overall productivity, motivation, and satisfaction.

Pay as Much, or More Than the Competition

Our country thrives on capitalism, and with that comes the beauty of competition. When job hunting, employees typically compare the average wage for a certain position with what companies are actually paying. If your company pays significantly less than the competition without providing other non-financial rewards, then chances are employee retention will be low. Every few years, it is a good idea to reevaluate the current compensation plan and make adjustments as needed. Being generous with employee salaries makes a company stand out among other businesses and can be the driving force for new applicants.  

Reward Top Performing Employees

Gifting top performing employees with bonuses, vacation time, etc. shows the staff that hard work is not only expected, but appreciated and rewarded as well. Distinguishing staff members that exceed expectations with ones that simply meet them can determine if certain needs are not being met within specific departments. Compensating moderate level employees more modestly than star performers gives others a goal to reach, something to work even harder to earn. Using this same principle, employees that fail to meet expectations will receive no additional bonuses for that quarter.

Source

https://www.forbes.com/sites/elenabajic/2013/07/15/the-6-steps-for-retaining-good-employees/#452abeb6721f

What is Compensation Planning Software?

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In this week’s blog post we are going back to the basics… to the very basics.

This is for all you newbies or those who just need a review of compensation, compensation management, and compensation software programs. We are going to dive into all the nitty-gritty details of what compensation is, how it works, and how software systems factor into that equation (spoiler alert: they make everything way easier).

To begin, we will start with the basics of compensation. This document called “Human Resource Management: Employee Compensation Guide” breaks it down pretty simply, but I’ll do you a favor and discuss it briefly here.

Essentially, there are two major types of compensation: direct and indirect compensation and the definitions are pretty self-explanatory. Direct compensation refers to any type of pay that goes directly to the employee. This includes both base pay and merit pay, which together encompass things such as salary and wages, bonuses, stock options, savings plans, commissions, or profit-sharing. Indirect compensation is anything that has monetary value but is not delivered in direct cash. This type of compensation is far more diverse than direct compensation because the options are really customizable to each individual company. Some examples of indirect compensation include insurance programs, pensions, vacation and holidays, sick leave, and access to company perks, such as gym memberships, vehicles, and other kinds of special services.

Now that we know all the various parts that can make up the broad category of compensation, let’s look into the details of a compensation plan. As you may have guessed, a compensation management plan is any of the specific pieces of compensation arranged in a way that makes sense for your company.

Now for the difficult part… how on do you take all of these pieces and create a plan that actually works for your company? One that promotes growth and development, keeps employees around and keeps everyone in the company engaged and excited about the work they are doing.

Well, there are a few basic steps that you need to take to ensure that your compensation plan will be successful.

Christy Hopkins article lays it out plain and simply: 6 easy steps to a compensation management plan. First, “Establish a Pay Philosophy,” which means prioritize the types of compensation that you want to offer and what benefits you will give your employees. Next, “How Much is Your Compensation Paying.” Figure out how you are going to compare and compete with similar companies or job positions. Third, “Set the Salary Level or Hourly Pay Rate.” Now you have to decide between the two modes of pay, for each position of course, and then pick a number that seems suitable. Fourth, “Creative Incentive Compensation Components.” At this point, you are layering on the benefits. Do you want to offer extra vacation days or sick days, will you provide quarterly bonuses or merit-based, yearly bonuses. Fifth, “Pay Raises,” so you now need to decide when employees get raises, how those raises are based, and how much they will actually be. And finally, the sixth step is to “Chose Your Payroll Software.” This is what will manage how your employees actually get paid and sets up tax information and workers compensation programs.

If it wasn’t blatantly obvious, none of this is actually easy to do on your own.  In fact, it’s incredibly difficult! Within these six easy steps, are a million other things that you have to consider, and this doesn’t even include the yearly compensation planning session, where you have to double and triple check all of your spreadsheets and then reevaluate if the plan still works for your company. Even if you know all the different types of compensation, various combinations they could be made into, there are still many, many moving parts of the equation that you have to figure out in order to have the best possible compensation management plan for your company.

That’s where a compensation software and the title of this article comes into play.

Compensation planning software is just about as simple as its name. It is a software program that you purchase from a compensation software company that will create a custom piece of software that fits both the needs and existing infrastructure of your company. “But,” you might say, “how can an algorithm know exactly what I need for my company? It can’t read my mind!”

To that I would respond…. You’re right. It can’t read your mind! But, with an investment in compensation planning software you are not gaining just the software itself. You will be consulting with a compensation specialist of the compensation software company to discuss your specific needs and priorities. Then, they will customize your program to do exactly what you need it to do. It can even be programmed to fit your existing HR software, so there is even less work on your part. 

See, it all fits right into the six-step plan… except you get to skip steps 2-5. When using a compensation software, you need to have an idea of what you want your company’s compensation system to look like, or your “compensation philosophy,” but you do not have to have every single detail mapped out. The software does it all for you!

So let’s get back to my original question: “What is compensation planning software?” In reality, it’s the answer to your compensation problems. It is a program that is designed specifically to support your company’s compensation needs and budget, keep your employees engaged and happy, and, overall, lead your company on a path to growth and even more success.

Here at Harvest HCM we will work hard to provide the services you need through our compensation software and performance management programs that are always customized for you.  

5 Ways Compensation Software Can Simplify Your Life

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Compensation management can be a hassle. On one hand, you want to give your employees the best possible working environment. You value their hard work and job satisfaction, and you want them to feel happy, secure, and successful in their work. On the other hand, compensation management takes a lot of time, money, and (personal investment). You want the focus of your business to be the product or service that you offer, and spending time on compensation management takes resources away from your primary goal.

It’s a tale-as-old-as-time conundrum. The toss-up between being a good employer and a successful business. But… what if this didn’t have to be an issue? How would you feel if there was a way to have the best of both worlds?

Have no fear! Compensation software is here!

It’s the solution to all of these problems. Specifically, here are 5 major ways that compensation software can simplify your life, and that’s just the beginning!

Reduce Errors

Human error is inevitable. Even if your compensation management personal is some of the best in the business, it is likely that your employees will make mistakes. Filling out spreadsheet after spreadsheet can be daunting, time-consuming, and frankly quite boring. Even with the use of Excel, Google Sheets, or Numbers, there is still a human employee responsible for punching in the data.

Take a second to think about it: how often do you make mistakes? It is incredibly easy to have a type, forget or add a 0, change a 5 to a 6, and those small mistakes add up when it comes to employee compensation. Other than clerical errors, there are numerous other mistakes that individual employees or even business can make, which can cost businesses serious money.

With compensation planning and management software, the risk of error is reduced to 0. Think about it, if there is an automated computer program managing all of these numbers, there is simply no way that can fail. When a program is automated, all of the work relies on a ready-made algorithm, that has proven over and over again to be successful for business.  

Save Money

As of March 1, 2018, the cost for a compensation and benefits manager ranges from $89,080-$120,298 with a median of $104,583. Even if this number seems manageable, compensation costs are only about 69.6% of employee costs, according to the United States Department of Labor. On top of wages and salaries, employers have to pay for benefits, which include paid leave, supplemental pay, insurance, retirement and savings, and taxes or other legal requirements. This doesn’t even include raises or job promotions, which are necessary to retain employees year after year or the cost of more than one person in the compensation department.

Once you look at the numbers, the price of keeping and maintaining compensation personal is increasingly expensive. Compensation software is the answer to these problems. With software, there are no hidden costs, and the price is not going to exponentially increase the longer you use it.

Save Time

Once again, using compensation software means not having to hire an employee whose only job is to manage employee compensation and management. Instead, the software does all of the work!

This saves an incredible amount of time. With an employment spot opened up, now your business can hire a new sales manager or marketing expert. As a business owner, your time searching for the perfect employee or the time of that compensation employee can now be allocated to something that helps grow your business.

Lower Stress

Remember that tale-as-old-as-time conundrum that we were talking about earlier? It is an incredibly stressful experience. No employer wants to be stuck between having the best for your business or the best between your employees. This can be incredibly stressful for employers, who really strive to have an all-around successful business. No one wants to sacrifice employee satisfaction or potential profit.

But, why not have both of them?

Compensation management reduces stress by making employers feel at ease with a fail-proof compensation management plan. Like we’ve said before, reducing the need for a compensation manager saves money, human error, and plenty of time- all of which directly increase potential profit.

Additionally, employees feel secure when they know that they are being fairly compensated for their work. If an employee feels like they do not make enough for the job they are doing, they are going to go somewhere else to find fair compensation. But, using a compensation management tool will help employees feel that they are getting what they deserve because it is all tied to the compensation software algorithm.

It’s a win-win-win situation.

Increase Employee Morale and Success

So far, we know that having software to manage compensation can reduce human error, save time and money, and lower stress but what do all of these things have in common? They actually make your employees happier and more productive!

This is the ultimate key to having a successful business. If your employees are happy in their jobs and satisfied with their salary and benefits, they will produce higher quality work. An article by Fortune states that “being happy at work really makes you more productive.”  They found that “productivity increased by an average of 12%, and reached as high as 20%” when employees felt happy at this work.

This study did use showing funny videos as an indicator of happiness, but saving time, money, reducing error, and reducing stress are all things that help employees become happier- I know that it makes me happier!

Good compensation management is crucial to employee happiness, which then increases employee success.

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Now, these are just some of the ways that having compensation software can improve your business. It reduces errors, saves time, saves money, lowers stress, and increases employee retention.

Just imagine, an office where errors are rare, less time is wasted, money is used in the most efficient way, and employees are happy; it really does sound perfect.  

While of course, no business can be absolutely perfect, compensation management software can get it pretty close.

How to Tell if Your Company Needs a Compensation Software Solution

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There comes a time in the growth of your business where you need to make important decisions that can potentially make or break your overall success in the coming years. These big decisions need to be thoughtfully and carefully planned out. You wouldn’t want to implement a new program or hire new people that will only support your business for a short time. You do want to make decisions that will be beneficial for your company now and three years from now. 

One of those often overlooked but desperately important decisions are the choice of using a compensation software program or continuing to handle your own compensation management plan. Compensation is one of those parts of owning a business that no one is ever really excited to do, and it’s not something that is planned very far ahead in when creating a new company. It’s just one of those necessary elements of owning a business and managing your employees that need to get done. But when exactly is the right time to make the switch from overseeing your own compensation plan to purchasing a compensation management system?

Well, there are a few key benchmarks that will signal your need for compensation help. I am going to discuss just a few of them here; including, acquiring a high number of employees, spending too much time fixing errors, not knowing spreadsheet software, and hating compensation management. Each of these points in time of owning a business is key indicators that you need to search for a compensation management solution, specifically a compensation management software.

If you don’t know that much about compensation…

           If you are anything like me, you love a good DIY. Doing things yourself supposedly saves time, money, and the hassle of finding the right product for you. Why not just do the work yourself and customize it to exactly what you want it to be…. Well, I think we all know that it almost never turns out that way.
           Creating a compensation plan from scratch is a lot of work that requires a lot of background knowledge on the ins and outs of compensation to create. When you or one of your employees is not an expert on compensation or doesn’t know the latest tricks to save time and energy, your run of the mill spreadsheet programs simply will not do the trick. You need something or someone with a more advanced knowledge base to handle your compensation.

           Harvest HCM is that something and someone. At our company, we provide an individualized compensation software program based on your exact needs as a company. Basically, it’s the DIY that you don’t actually have to do yourself! Additionally, we have an excellent customer service team that is always there to answer any of your compensation questions. We will be your source of knowledge, so you can focus on the many other aspects of running a business.

If you are approaching 1k employees…

           So, it’s likely that even if you have very little knowledge of compensation and have been able to manage your compensation plan on your own for quite a while. But, know that you are starting to encroach on 1,000 employees, it’s probably getting too much to handle. You are opening new departments, hiring multiple levels of management, and your employees are working their way up the pay scale. The more people that you have onboard and the longer that your business has been open, the more difficult it is to properly manage your compensation plan.

           Hitting 1,000 employees is a great time to look into compensation software and even performance management software. When you use Harvest HCM’s program, we work with your existing HR management system to integrate software that is perfect for your employees. This way, you can easily navigate between your growing employee stats, compensation planning tools, and total rewards statements with an individualized plan perfect for you, your employees, and your company.

If you spend too much time fixing errors…

         When you began researching compensation plans, there is no doubt that you realized that there is no such thing as a one-size-fits-all plan. It probably spent your weeks’ worth of time to finalize a plan that would work for all your different types of employers… just the first time around. This realization probably hit, again and again, every single time you had to adjust a specific part of your plan or go in and fix the errors that came up with you were using a pre-designed spreadsheet or even a homemade spreadsheet.

           When you are typing in numbers to a spreadsheet, no one wants to admit it, but it’s not an easy thing to get right! And, if you mess up one little number in the formula you are using or the numbers you input, it could throw off your entire budget. You might end up spending hours trying to find the one little mistake that you made in hour 7 of inputting all of the various compensation information.

           Compensation management software is completely customizable to your exact needs. Here at Harvest HCM we are configured to your needs. We work with you so the product fits into your company, not the other way around. With us, you are guaranteed an error-free compensation management solution that satisfies all of your compensation needs, and you don’t have to do any of the work!

If you dread the comp planning season…

           You might actually be really good at compensation. You may have created a compensation plan that has worked for the growth of your business, be able to manage any errors made and adapted your plan as your company changes. But what if you just really dread doing this?

           It’s okay to search for help, even if you know how to do something! This is something that is hard for a lot of business owners to do. A lot of once-small business are used to handling everything themselves, and once their company gets so big that they do this, they become so overwhelmed and can’t enjoy running their business anymore!

           This is another perfect entry point into purchasing a compensation software solution. Harvest HCM can take one of the many loads off of your shoulders and manage this part of your business for you. Without the extra dread of the compensation planning season, your schedule is freed up to work on what YOU want. Have you thought of adding a new department? Creating a new product? Offering a new service? Do it! Once you start using compensation management software, we will adapt to your growing business, and you can focus on what you do best.

           These are just a few of the reasons you might need to start looking into a compensation management solution. To sum it up, if you are struggling in one area of your business, delegate one of your major responsibilities. Using compensation software is simpler and cheaper than hiring a compensation manager (as discussed here), and we will work hard so you can work less.

How Compensation fits into the People, Product, and Process Model

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Commonly known as the “Three P’s,” people, product, and process are the three key factors to running a successful business. According to David Ciccarelli of Entrepreneur, they are the “three areas that have yielded the greatest return on investment of your time and money.” It’s a business philosophy that streamlines the way that you make decisions for your company. When making choices for your business, you need to ask the question: “will this directly benefit my people, product or process?” If the answer is yes, it is most likely a good decision.

When using this business philosophy, you are narrowing the focus of your values in your company. Using the people, product, and process model streamline decision making and makes everything simpler, easier, and most importantly, more efficient. I recommend this short video from Inc. Studio that quickly describes how the Three P’s can lead you to success. Essentially, a company that puts its focus on these three aspects of their business will ultimately be more successful than one that doesn’t.

So when incorporating the “Three P’s” into your business plan, you have to consider how every aspect of running your company can fit into that philosophy. One of those very important aspects that you have to consider, is the compensation management process.

As your company grows compensation management becomes increasingly difficult. More employees in more departments create… more difficult problems that take more effort to solve. As you can see by that previous sentence, managing your compensation plan for your business simply becomes more difficult to control as time goes on.

So, today we are going to look at how compensation management, and specifically compensation management software, fits into the people, product, and process model. 

People

There are two major groups of people that you need to consider when following the Three P’s business model. When it comes to compensation management, the first group that you need to look at is your employees, the people that will be primarily affected by your compensation management plan. When you find the right compensation plan for your business, your employees will be more motivated in their job and more likely to stay with your company for a longer period of time.

The second group of people you need to consider are your consumers. These are the people that are keeping your business afloat, so, you want to make sure that they are having the best possible experience with your company, so they become return customers and spread the word of their love for your product or service!

Unsurprisingly, this again relates back to your employees. When you have employees that are satisfied and motivated in their jobs, they will be better at catering to the needs of your customers. Additionally, with the money you save on buying software instead of hiring a compensation manager, you can allocate those funds to things like marketing, production, product design, or customer service to make sure you are doing the best you can to serve your consumers!

1. Product

Again, this category is twofold. The first product that you need to analyze is the compensation management program that you are going to use to create your plan. There are several things you need to consider when searching for the best compensation management plan for your company, but to narrow it down, I’ll give you the few most important ones.

First, you need software that has all of the features that you desire. Look for options such as performance metrics, specific bonuses, and individualized overviews. Next look for a company that prioritizes customer service, so you can always have on-hands help with your compensation. Finally, you want a company that will specialize in customization, so you can work with your existing software infrastructure and get exactly the things you need out of compensation planning. Check out our blog post titled “3 Key Things to Look at When Purchasing a Compensation System” for more information on this topic.

Next, you need to focus on the product that you are selling! I know you might be thinking, how does my product relate to compensation planning, but they, just like everything else in business, are deeply connected. Like I mentioned in the previous section, the money you save with compensation management software gives you more money to place elsewhere. However, in addition to that, the less time you have to spend on administration, the more time you can spend improving and perfect your product and/or services.

2. Process

Finally, with the people and product already under consideration, your process is bound to be more efficient and effective for both your employees and consumers. There is really no better way to simplify and improve your compensation plans than to incorporate the use of compensation software. With the individualized program, you no longer have to spend hours creating spreadsheets, create plans for each department and each person within that department, or even hire a compensation manager or team. Every aspect of compensation is handled by one software program, creating less stress and more time to focus on your consumers.

This brings us to the process of working with your customers. I’ve already mentioned the time and money that you save when using compensation management software, but something I have yet to bring up is how it saves you from stress. From both a management and lower-level employee perspective, a clear and appropriate compensation management plan makes everyone happier.

3. Progress

Progress isn’t officially one of the “Three P’s,” but if you follow the Three P process, progress is your result. Especially when considering how compensation management fits into the Three P philosophy, you can see how easily you can progress your company forward.

By streamlining decisions about compensation using the Three P process, you will likely end at a conclusion that incorporates compensation management software. Customizable software programs improve the morale of your employees, satisfaction of your products and services, and make the process of compensation planning infinitely easier.

The best way to solve your compensation problems is to analyze how it affects the people involved with your business, the products you are selling and purchasing, and the processes that run your business. So, when we revisit our original question “people, product, and process: where does compensation fit in,” the answer is: everywhere.

3 Key Things to Look at When Purchasing a Compensation System

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Purchasing compensation software is a big decision, and it is not one that should be made lightly. Think of it this way: you just bought a new home and want to buy a security system to protect it. Your home is very important to you, and you want to have a system that fits your exact needs. Maybe you do a lot of online shopping and want a front door camera to make sure your packages don’t get stolen. Perhaps you have rowdy teenagers and want a system that stops them from sneaking out at night. It might be important that your system has the fastest response time in case of a robbery.

           The point is that there are dozens of options to choose from when it comes to choosing the right security system, and there are a lot of factors to consider when finding the perfect one for you. To make it very simple, you want to choose the company that has the features that you want, provides excellent customer service and is customizable to fit your house. As it turns out, these are the exact same three things that you want to look for when you are purchasing a compensation software plan.

           Today we are going to look closely at these three important factors of finding the right compensation system and how they affect your business.

1. The Perfect Features

The first thing to look for when you are looking for the right compensation software system is to make sure that the plan has the features that you want. As mentioned in this article featured on LinkedIn, there are at least 10 key elements to compensation software. They include but are not limited to base salary, stock options/ units, bonuses, health and wellness, and 401k contributions. The truth is that there are so many different elements of a compensation plan that you need to consider when creating the best and most competitive plan for your employees.

Other than the specific features, you might want to consider how the compensation software system lets you differentiate these features and how they are offered to different departments or levels of employees. If you have consultants or salespeople that do significant travel, you might want to consider things like food and travel stipends and company vehicles. If you value highly educated employees or want to promote growth within your company, you might want to offer scholarships or tuition reimbursement for specific degree programs. It is important that there are a variety of options when it comes to the different types of compensation.

Another crucial feature that you will want to look into is performance metrics. Some compensation software plans, like the ones at Harvest HCM, offer programs that measure performance, set and track goals, and provide rewards for excellent job performance. This is an aspect of compensation that is highly related to both company growth and employee engagement, so it is something that you should be looking for in your compensation software.

2. Excellent Customer Service

The next thing to look for when purchasing compensation software is to consider how well the software is going to serve you. You don’t want to simply be handed over the software and then ignored if you have any questions or changes that need to be made. What you do want is to purchase your compensation software from a company that will provide excellent customer service along with their excellent software. The service that is provided by the compensation software company is equally if not even more important than the software itself.

Additionally, you want a compensation solution that will grow and adapt with you just as your company does. It is very likely that the compensation plan that you have one year may not be the best option for your company in the next year. It is important that you find a company that is will to adapt the plan with you so that you are always providing your employees with the best and most cost-efficient compensation.

One of the ways to ensure that you are getting the best customer service is to research the company that you are going to be purchasing from. For example, on the Harvest HCM website, we have testimonials from existing clients that have used and loved our service. Cathy Arrendale, the Director of Global Compensation at Davita, stated that “Harvest HCM will respond to my emails or phone calls any time of the day or night!” That is exactly the kind of dedication that you need from your compensation software system.

3. Customization

           Last, but certainly not least, you want to find a compensation management system that customizes exactly to your needs as a company. As discussed in this post, compensation plans are not one-size-fits-all. In fact, they actually need to be extremely specific to the exact needs of your company to be able to promote growth and engage your employees! Therefore, it is necessary that you find a compensation software company that will work closely with you to create the best compensation management system for your company.

           There are a few key points of customization that you want to look for in your compensation software. The first is that it will work with your existing HR and payroll software. When you are implementing a new program into your company, the last thing you want to do is change more things than necessary. Even if you have the best and most easy-to-use software, there will still be a period of time where you have to learn and adjust to the system. The last thing that you will want to do is learn multiple new ways of managing your business instead of one.

           Finally, another thing you want to consider when looking for compensation software is your budget. There may be some parts of a compensation plan that are simply unnecessary for the size and nature of your company. You don’t want to be paying for something that you don’t use. Instead, you want a company that offers several additional products like performance management, succession planning, and total rewards statements, but you do not want to be paying for these things if you are not going to use them. A company that offers highly customizable plans is your best bet for getting all of the features that you want and none that you don’t need. 

           Ultimately, you want to look for a compensation software program that is going to provide the best product and service for you. This means they must offer new and extensive features, provide great customer service, and be completely customizable to your exact needs. At Harvest HCM we focus on those three exact things to create the best possible products for our clients, so they can continue to run great and successful companies.

5 Ways to Keep Your Employees Engaged

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It’s not always easy to keep your employees motivated, but their engagement in their work is vital to the success in your company! If you have happy employees who like their job, it is far more likely for you to get their best quality work. Below are five tips to help you make this happen, and don’t worry, it’s easier than you think!

Recognize and Reward

First and foremost, your employees need to know that they are wanted and valued, and the best way to do this is to recognize their good work and reward them for it! There are several ways that you, the employer, can do this. The first part of this strategy is recognition. Your employees need to hear from you when you are proud of the work that they do. This works on many levels. If an employee is unsure about their new idea or finished presentation, personal recognition will help ease their mind. On the other hand, when an employee is really proud of a project that they put a lot of effort into, recognition from their employer will let them know that all of their work was worth it. 

 Not all rewards have to be compensation based. Many people can be motivated by smaller rewards such as acknowledgement amongst peers or receiving an award- sometimes even a simple compliment will do. However, those small incentives may not be the best for continual engagement, which is what makes bonuses a great option. Specifically, one of the best ways to do this is through merit-based bonuses. With these types of bonuses, you can track your satisfaction with your employees work, and the better their work, the better the reward!

This type of reward is great for employee motivation and retention because it is directly tied to the work that they do. Not only are they excited for the compensation reward, but when they do receive higher merit-bonuses, it boosts their self-esteem. It lets them know that they are on the right path. Through your compensation and performance management program, you can create a reward system to manage all of this information. Being adequately rewarded for the hard work that they put into their job will make your employees feel satisfied in their career.

Foster Creativity

Another important way to keep your employees engaged is to encourage their own creativity. This can be both directly and indirectly related to the work that you do, and both will have the same great effects.

Again, there are several ways that you can integrate creativity-building activities into your work environment. For example, try challenging your employees to do something slightly out of their comfort-zone. The Forbes article, “37 Ways to Keep Your Employees Motivated From A 37-Year-Old Entrepreneur” cites both “embracing change” and “stirring the pot” as methods of keeping your employees engaged. This could big having two employees who don’t usually work together share a project, or it could be as small as doing a fun team building activity in an office meeting.

Sometimes your employees just need a little brain break! Especially if you have just finished a busy season or a big project, try scheduling in a little creative to create new energy in the office. D!gitalist Magazine suggests activities such as “being outside,” “physical activity,” or just simply “doing something different.” Taking time to refresh and rejuvenate as a work team can do wonders for both engagement and productivity.

In that same Forbes article, the author cites “supporting new ideas” and “keeping an open mind” as another key to employee engagement. Both of these get at another key component of fostering employee creativity, which is allowing your employees to think outside of the box when it comes to their own work or even new possibilities for the company. If an employee knows that their input is valued and listened to, they will feel comfortable to contribute in new and innovative ways.

Decrease Boredom

Now, this point seems like a no-brainer, but it can actually make a big difference in the engagement and motivation of your employees. To put it simply, if they are bored, they aren’t focused on what they are doing. This means they won’t produce their best quality work, and they won’t be as happy in the workplace. These are both obviously bad, so how do you combat boredom? It seems like everybody gets bored sometimes, but there are actually strategies that you can use to make your workplace fun and inviting.

One of the easiest ways to make your office less boring and more engaging is to change the way it looks! It might seem silly, but when a space is visually interesting, it actually helps with brain stimulation. Having colorful walls or live plants will give your employees something to look at while they’re working. If the space isn’t boring, it’s more likely that your employees won’t be bored either!

Another way to combat boredom is to schedule intermediate-work events. These can be 10 minute 2:30 P.M meetings. You know, the time of day where everyone starts nodding off and needing their fourth cup of coffee? Instead of increasing the caffeine intake, try having a crossword puzzle race, or a mini raffle drawing to give your employees a break. If games aren’t your management style, you could use this time for professional development. Try teaching your employees a new skill or practicing an old one. This way, you can take a break from work, but it still benefits productivity in the long run.

Be Open, Honest, and Caring

Employees should not be afraid of their boss. Just like the physical space of your office, the atmosphere should also be warm and inviting. Let’s use an analogy to think about it. Think back to your days in grade school and picture your very favorite teacher that you ever had… now think of your least favorite. Which one of these people got better quality work from you? I’m more than willing to bet that it was your favorite teacher, and it’s not just you that thinks this way. According to this Harvard Business Review article, “The Hard Data on Being a Nice Boss”, employees are far more likely to happy, comfortable, and motivated in their work environment if they like their boss. In fact, “Harvard Business School’s Amy Cuddy and her research partners have also shown that leaders who project warmth – even before establishing their competence – are more effective than those who lead with their toughness and skill. Why? One reason is trust.” Employees that trust their boss are going to produce better work, and science has proven it.

Even if you aren’t the biggest people person, there are a few easy ways to help make your employees more engaged. It’s as simple as having small conversations. Next time you walk past the new sale’s member’s desk, ask them about their weekend or their kids. When someone asks you for your opinion on a project match every piece of constructive criticism with a compliment. Making small gestures like this will let your employees know that you care about them and their happiness in your working environment.

Set Goals and Encourage Growth

I saved this best for last. This strategy is one of the very best you can use in any facet of life, but it is especially successful in the workplace. Goal setting does three major things: keeps your employees focused, provides them with clear expectations, and gives them something to work toward.

Goal setting should be done on at least a yearly basis, but it is even more effective when done quarterly, or even monthly. This is also something that needs to involve both the boss and the employee. Again, at least every year, you should meet with your employees to go over their current progress that they have made at your company, and together you should create a plan to further that progress. If the two of you make and measure goals together, you are both more likely to be invested in the accomplishing of those goals.

This is also a strategy that can be tied to compensation. Just like in my first point “recognize and reward,” merit-based bonuses are a great way to incentivize goal setting, and it gives you a specific part of your employee’s work to measure. It’s easy to incorporate into your compensation management process. Again, using your compensation management software, you can put all of your goals into your compensation database. This will allow you to track all of your information, with both the financials and goals, and help you create a fair compensation plan that allows for individualized input, like goal-setting.            There you have it, my five tips for keeping your employees engaged. As you may have noticed, all these strategies seem to intertwine. A lot of the ways that you can foster creativity also decrease boredom, and being caring and helping setting goals corresponds with recognition and rewards. Even if you just implement one of these new engagement strategies into your workplace, you are bound to increase motivation in your employees, resulting in a happy and productive work environment.